TERMS OF REFERENCE #1: Investment Readiness

TERMS OF REFERENCE: #1

ENGAGEMENT OF EXPERT TO ASSESS INVESTMENT READINESS OF PARTNER COMPANIES AND RECOMMEND ACTION PLAN FOR ENHANCING INVESTMENT POTENTIAL

1. Background

The UK Nepal - Nepal in Business- Growth Advisors (NiB-GA) programme, launched in July 2024, is a five-year initiative funded by UK International Development and implemented by DAI Global UK. NiB-GA aims to unlock economic prosperity in Nepal by fostering the growth of small and medium-sized enterprises (SMEs), creating new jobs, and driving private sector-led economic growth.

NiB consists of two main components:

• Business Support Facility (BSF): Provides technical assistance and investment to SMEs to enhance their productivity, competitiveness, and potential for job creation while making them investment ready in the long run.
• Business Environment Reform Facility (BERF): Engages with government stakeholders and private sector associations to reform business regulations, reduce trade barriers, and improve the overall enabling environment for businesses in Nepal.

2. Objective of the Assignment

The assignment intends to undertake baseline assessment of investment readiness of selected SMEs of NiB and identify recommendations to enhance their attractiveness to institutional investors - primarily Private Equity and Venture Capitals (PEVCs) and Development Finance Institutions (DFIs). The service provider is expected to review, access and recommend strategies to enhance the company’s financial structure, corporate governance, growth strategy, and enhance capabilities of the leadership. Additional considerations include environmental, social, and governance (ESG) assessment and recommending specific action plans for compliance from investment readiness perspectives. 

NiB-GA will onboard 8-12 partnerships in its first year of implementation who shall be the subject of assessment by the service provider. 

3. Scope of Work and Deliverables

The selected expert/team of experts is expected to perform the following tasks:

Phase I: Assessment Planning and Inception

Tasks:

• Discuss and agree on the areas of assessment for investment readiness aligning with NiB-GA’s requirements, submitted proposal and timelines
• Finalise matrix and tools to be used for assessment
• Populate list of documents required for assessment to be provided by the company and NiB-GA
• Agree on the scope and deliverable including engagement plan with companies  

Deliverable: Revised workplan for the assignment within a week of contract signing

Timeline: 1 week from contract signing

Phase II: Data Collection and Analysis

Tasks:

• Collect relevant data and reference documents
• Field assessment as required [includes consultations and interviews of company leaderships and staff as required by the methodology]
• Analysis of investment readiness using agreed tools and methodology

Deliverable: Baseline investment readiness report before NiB-GA’s engagement

Timeline: 3 weeks from contract signing

Phase III: Validation and Action Plans

Tasks:

• Present preliminary findings to NiB-GA and company leadership
• Finalise recommendations in consultation with the company

Deliverable:

• Recommendation to enhance investment readiness and ESG compliance action plan
• Map potential PEVC and/or DFI with interest for investment in this company

Timeline: 4 weeks from contract signing

4. Qualifications of the service provider

The applicant firm must demonstrate:

• At least 5 years of experience in investment readiness assessment including ESG auditing, firm-focused consulting, or related fields.
• Multidisciplinary team with expertise in environment, social development, gender, and governance.
• Strong analytical and reporting skills.
• Demonstration of evidence of investment because of support from the service provider is preferred
• An upcoming portfolio of investment aligning with NiB’s sector of interest is preferred. 

5. Proposal Submission

Interested service providers (individuals/firms) are invited to submit their interest detailed below: 

• Technical proposal
  • A two/three pager approach and methodology with timelines on how the assessment shall be executed 
  • Experience of expert/s in providing services similar to the scope of work and CVs of the team
  • Private sector references by the companies who have been supported by the expert/s
• Financial proposal
  • Quote on number of days engaged by the expert/s and overall budget for one assessment and recommendation. 
  • Please note that assessment of some companies might require field visits for which expenses as per actual shall be covered by NiB-GA directly and hence is not a part of financial proposal.
• Regulatory requirements 
  • Certification of registration, VAT clearance and renewal as applicable for firms
  • PAN certificate for individuals

Please submit these documents via email at procurement_NIB@dai.com Applications will be evaluated on a rolling basis.

6. Evaluation of Proposals

Proposals will be evaluated using the following criteria:

• Technical Approach & Methodology – 30%
• Relevant Experience of Firm – 30% [section 4 of the TOR]
• Team Composition & Expertise – 40% [CVs and expert’s credentials]

Applicants will be ranked using the above criteria and those passing the 70% score shall be maintained in the roster of service providers for this task. Subsequently, aligning with company’s area of expertise, geographic distribution and other factors, NiB-GA’s partner companies shall be allocated to the service provider through separate contracts. Financial negotiation per company shall be done as deemed necessary by NiB-GA. 

7. Working and Reporting Arrangements

The service provider shall work under the supervision of Private Sector Partnership Director of NiB-GA. NiB-GA will facilitate the process of engaging with partner companies including obtaining necessary documents and data as available with the company for assessment.